Exploring the Growth Potential of NASDAQ:DUOL as It Nears a Breakout.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether DUOLINGO (NASDAQ:DUOL) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but DUOLINGO has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Deciphering NASDAQ:DUOL's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:DUOL has achieved a 8 out of 10:

• DUOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 777.78%, which is quite impressive.
• Looking at the last year, DUOL shows a very strong growth in Revenue. The Revenue has grown by 42.48%.
• DUOL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.65% yearly.
• The Earnings Per Share is expected to grow by 135.04% on average over the next years. This is a very strong growth
• DUOL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.78% yearly.

Understanding NASDAQ:DUOL's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:DUOL has achieved a 8 out of 10:

• An Altman-Z score of 23.99 indicates that DUOL is not in any danger for bankruptcy at the moment.
• DUOL's Altman-Z score of 23.99 is amongst the best of the industry. DUOL outperforms 96.97% of its industry peers.
• There is no outstanding debt for DUOL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• A Current Ratio of 3.09 indicates that DUOL has no problem at all paying its short term obligations.
• DUOL has a better Current ratio (3.09) than 83.33% of its industry peers.
• DUOL has a Quick Ratio of 3.09. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Quick ratio, with a value of 3.09, DUOL belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.

Evaluating Profitability: NASDAQ:DUOL

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:DUOL, the assigned 5 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 7.12%, DUOL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
• With a decent Return On Equity value of 10.55%, DUOL is doing good in the industry, outperforming 69.70% of the companies in the same industry.
• DUOL has a better Return On Invested Capital (5.59%) than 66.67% of its industry peers.
• The Profit Margin of DUOL (12.59%) is better than 84.85% of its industry peers.
• Looking at the Gross Margin, with a value of 73.13%, DUOL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.

How do we evaluate the setup for NASDAQ:DUOL?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:DUOL is 7:

DUOL has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 338.06, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Check the latest full fundamental report of DUOL for a complete fundamental analysis.

Check the latest full technical report of DUOL for a complete technical analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.